Where an Event of Default occurs, the amount of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available for application in respect of that Event of Default is the lower of:
- an amount equal to three times of the Clearing Member’s Prescribed Contributions as at the start of the 30-day period that ends on the day of the Event of Default less the aggregate amount of that Clearing Member’s Collateralised Contribution and Contingent Contribution that has already been utilised for all other preceding Events of Default that had occurred in that 30-day period; or
- where the Clearing Member’s Collateralised Contribution was adjusted during the aforementioned 30-day period, an amount (“Adjusted Amount”) equal to three times of the consequently adjusted Prescribed Contributions less the aggregate amount of the Clearing Member’s Collateralised Contribution and Contingent Contribution that has already been utilised for Events of Default that occurred after the day of that adjustment but before the Event of Default.
In the event the Clearing Member’s Collateralised Contribution is adjusted multiple times during the 30-day period, a separate Adjusted Amount shall be calculated for each adjustment and the lowest Adjusted Amount shall apply for the purpose of this Rule 7.10.6(2).
Refer to Practice Note 7.10.5, 7.10.6.
Added on 31 October 2024.